Which of the Following Statements Regarding a Non-U

question 85

Multiple Choice

Which of the following statements regarding a non-U.S. person's U.S. tax consequences is true?

• A) Non-U.S. persons may be subject to withholding tax on U.S.-source investment income even if not engaged in a U.S. trade or business.
• B) Non-U.S. persons are subject to U.S. income or withholding tax only if they are engaged in a U.S. trade or business.
• C) Non-U.S. persons are not taxed on gains from U.S. real property as long as such property is not used in a U.S. trade or business.
• D) Once a non-U.S. person is engaged in a U.S. trade or business, the non-U.S. person's worldwide income is subject to U.S. taxation.

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Definitions:

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as machinery, buildings, and land.

Full Capacity

The maximum level of output that a company can sustain over a long period without increasing its resources.

Sales Level

The total volume or value of all products or services sold by a company within a specific period.

Fixed Assets

Long-term tangible assets used in the operation of a business that are not expected to be converted to cash within a year.